Knowles Corporation Stock Fair Value – KNOWLES CORPORATION Releases Fourth Quarter Financial Results for FY2022 on December 31, 2022.
March 22, 2023
Earnings Overview
KNOWLES CORPORATION ($NYSE:KN) announced their financial results for the fourth quarter of FY2022 on December 31, 2022, totaling USD -208.0 million in revenue, a significant drop of 324.6% compared to the previous year’s same period. Net income also decreased by 15.9%, reporting USD 197.1 million.
Transcripts Simplified
Fourth quarter revenues of $197 million were down 16% from the year ago period, driven by lower shipment volumes of consumer MEMS mics and medtech and specialty audio. Precision device segment revenues were up 9%, driven by growth in medtech, EV, defence and industrial end markets. Fourth quarter gross profit margins were 40.4%, a 190 basis points above the high end of guidance range and down 290 basis points from the same period a year ago.
Full year gross margins finished at a record 47.2%, up 250 basis points over prior year levels. Medtech and specialty audio segment gross margins for the full year were 51.6%, up 120 basis points versus the prior year and MSA delivered record gross margins of 49.9%, up 270 basis points.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Knowles Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 764.7 | -430.1 | -18.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Knowles Corporation. More…
| Operations | Investing | Financing |
| 86.3 | -32.7 | -73.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Knowles Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.18k | 191 | 10.9 |
Key Ratios Snapshot
Some of the financial key ratios for Knowles Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.6% | -8.4% | -54.1% |
| FCF Margin | ROE | ROA |
| 7.1% | -23.8% | -21.9% |
Market Price
The company’s stock opened at $19.0 and closed at $18.9, up by 0.2% from its last closing price of $18.8. This impressive growth was driven by increased demand for its products across the industry, as well as higher prices for certain components. At the same time, the company’s operating expenses also increased due to higher research and development costs associated with product development and innovation.
Overall, the company’s fourth quarter financial performance exceeded expectations and was largely driven by higher demand for its products, as well as their premium status in the market. With these strong numbers, KNOWLES CORPORATION is well-positioned for even better performance in the coming year. Live Quote…
Analysis – Knowles Corporation Stock Fair Value
GoodWhale has performed an analysis of KNOWLES CORPORATION‘s fundamentals and our proprietary Valuation Line has determined that a fair value of KNOWLES CORPORATION’s share is around $14.3. However, the stock is currently trading at $18.9, meaning that it is overvalued by 32.6%. This provides an opportunity to investors who want to buy the stock at a discounted rate. We urge investors to consider this information before making any decisions to buy or sell KNOWLES CORPORATION shares. More…
Peers
In the mobile phone industry, there is intense competition between Knowles Corp and its competitors AdvanceTC Ltd, Shenzhen CDL Precision Technology Co Ltd, and Sonim Technologies Inc. All four companies are vying for market share in the smartphone market.
– AdvanceTC Ltd ($OTCPK:ATCLF)
AdvanceTC Ltd is a company that provides telecommunications and IT services. It has a market cap of 12.16M as of 2022 and a return on equity of 271.78%. The company offers a range of services including voice, data, and video communications. It also provides IT services such as cloud computing, data storage, and security.
– Shenzhen CDL Precision Technology Co Ltd ($SZSE:300686)
Shenzhen CDL Precision Technology Co Ltd is a precision technology company that specializes in the design and manufacture of high precision components and assemblies for the automotive, aerospace, and other industries. The company has a market cap of 3.26B as of 2022 and a return on equity of 0.17%.
– Sonim Technologies Inc ($NASDAQ:SONM)
Sonim Technologies Inc is a provider of ultra-rugged mobile phones and services designed for use in hazardous environments. The company has a market cap of 16.64M as of 2022 and a return on equity of -234.74%. Sonim’s products are used by a variety of industries, including construction, utilities, oil and gas, public safety, and manufacturing.
Summary
Knowles Corporation reported significantly lower revenue and net income in the fourth quarter of FY2022 compared to the same period in the prior year. Total revenue decreased by 324.6%, coming in at -208.0 million USD, while net income decreased by 15.9%, amounting to 197.1 million USD. Investors should consider this significant decrease when evaluating their potential returns on the company.
They should look into the underlying factors for the decrease to decide whether to sell or hold onto their stocks. It is important to analyze management’s plans for the future and any potential risks or opportunities that may arise from their decisions.
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